Waco Real Estate Market not 'Gloom & Doom'

The Waco real estate market is at a slow, but steady pace. And while home value appreciations in Waco might have seemed slow, local real estate players are counting themselves thankful to be in a place somewhat isolated from national housing woes. Even while the national media report large drops in home values and the country hits record-setting foreclosure rates, the stability of the real estate market in Waco should make it a safe place to weather the storm, said Trammell Kelly, a residential specialist with Kelly Realtors. In Texas, fast-growing areas such as the suburbs of Houston, Dallas-Fort Worth and Austin have experienced price drops and slowdowns in the market. But the fundamentals of the Texas economy remain strong, making the state a hotbed for job growth and the housing market, said Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University. In January, the real estate center released a report titled "Looming Boom: Texas Through 2030," which says that Texas still is being discovered by the rest of the country. The report estimates an increase of population in Texas of 13.6 million people between 2005 and 2030, 90 percent of which is projected to be located in a triangle between Denton, Houston and San Antonio. Waco lies near the center of that triangle, contributing to local builders' and agents' optimism about the future of the real estate market here. But the conflicting stories that people hear from the national media and local real estate professionals confuse homebuyers and sellers, making them ask more questions before entering the market, said Patricia Meadows, board president of the Waco Association of Realtors. The one indicator that raises concerns for some analysts is the Waco area's high inventory of homes for sale. It would take about nine months to sell all of the houses on the market at the current sales pace, according to data compiled by the real estate center. Experts at the center consider 6.5 months of inventory a balanced market, in which home value appreciation can be expected at an average clip. Anything less is considered a seller's market, and anything more is a buyer's market. Statewide inventory is about six months, Dotzour said, adding that it might be a good time for building activity for residential homes to slow to allow time for houses to come off the market. High inventory can slow the market by pressuring sellers to cut prices, which can affect home values. However, Waco has not been affected substantially by large-volume builders that tend to drive up inventory levels. That might reduce the chance that high inventory will sour the market, Dotzour said.

http://www.wacotrib.com/

Mark P.Felton, offers buyers looking for houses in Waco a full suite of professional services. As a licensed realtor and co-owner of Keller Williams Waco, he can assist you with any of your real estate needs. Mark also is a Custom Home Builder and Developer. His home building company is Front Porch Homes which build in and around the Waco area. And his development company is Frontera Development, which is a full service real estate development firm based in Waco, Texas. The primary focus is residential, master planned communities that emphasize the values of New Urbanism and Traditional Neighborhood Development.

Cotton Crossing
Rancho Lorena